TDS, TCS Reduced By 25% – Table Of Existing & New Reduced Rates (2020-2021)

To provide more funds at the disposal of taxpayers for dealing with the economic situation arising out of COVID-19 pandemic, rates of TDS have been reduced by 25% for following non-salaried specified payments. Here is the table of existing & new reduced rates :

TDS Rate Chart For FY 2020-21 Pre & Post 14th May 2020:

S. NoSection of the Income-tax ActNature of PaymentExisting Rate of TDSReduced rate from 14/05/2020 to 31/03/2021
1193Interest on Securities10%7.5%
2194Dividend10%7.5%
3194AInterest other than interest on securities10%7.5%
4194CPayment of Contractors and sub-contractors1% (individual/HUF)2% (others)0.75% (individual/HUF)1.5% (others)
5194DInsurance Commission5%3.75%
6194DAPayment in respect of life insurance policy5%3.75%
7194EEPayments in respect of deposits under National Savings Scheme10%7.5%
8194FPayments on account of re-purchase of Units by Mutual Funds or UTI20%15%
9194GCommission, prize etc., on sale of lottery tickets5%3.75%
10194HCommission or brokerage5%3.75%
11194-I(a)Rent for plant and machinery2%1.5%
12194-I(b)Rent for immovable property10%7.5%
13194-IAPayment for acquisition of immovable property1%0.75%
14194-IBPayment of rent by individual or HUF5%3.75%
15194-ICPayment for Joint Development Agreements10%7.5%
16194JFee for Professional or Technical Services (FTS), Royalty, etc.2% (FTS, certain royalties, call centre)10% (others)1.5% (FTS, certain royalties, call centre)7.5% (others)
17194KPayment of dividend by Mutual Funds10%7.5%
18194LAPayment of Compensation on acquisition of immovable property10%7.5%
19194LBA(1)Payment of income by Business trust10%7.5%
20194LBB(i)Payment of income by Investment fund10%7.5%
21194LBC(1)Income by securitisation trust25% (Individual/HUF)30% (Others)18.75% (Individual/HUF)22.5% (Others)
22194MPayment to commission, brokerage etc. by Individual and HUF5%3.75%
23194-OTDS on e-commerce participants1%(w.e.f. 1.10.2020)0.75%

TCS Rate Chart for FY 2020-21 Pre & Post 14th May 2020:

S. NoSection of the Income-tax ActNature of ReceiptsExisting Rate of TCSReduced rate from 14/05/2020 to 31/03/2021
1206C(1)Sale of
(a) Tendu Leaves5%3.75%
(b)Timber obtained under a forest lease2.5%1.875%
(c) timber obtained by any other mode2.5%1.875%
(d) Any other forest produce not being timber/tendu leaves2.5%1.875%
(e) scrap1%0.75%
(f) Minerals, being coal or lignite or iron ore1%0.75%
2206C(1C)Grant of license, lease, etc. of(a) Parking lot2%1.5%
(b) Toll Plaza2%1.5%
(c) Mining and quarrying2%1.5%
3206C(1F)Sale of motor vehicle above 10 lakhs1%0.75%
4206C(1H)Sale of any other goods0.1%(w.e.f 01.10.2020)0.075%

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